United States:
Farewell to the current tax exemption for gifts and estate taxes?
March 30, 2021
Ward and Smith, P.A.
To print this article, all you need to do is be registered or log in to Mondaq.com.
We recently wrote about a time slot to
Take advantage of the increasing inheritance and gift tax exemptions
it sets.
It becomes clearer that the window may close
fast. The opportunity to use the current gift
Liberation can be now as it seems we can be soon
Take farewell.
After the American Rescue Plan Act was passed, the
The ongoing COVID-19 pandemic appears to have changed
Consideration of extensive changes to the applicable tax law. To the
Example, suggested Senator Bernie Sanders on March 25, 2021,
Legislation that would, among other things
- Reduce the amount that is exempt from
the tax that a person can give during life or leave afterwards
Death of their children from $ 11.7 million to $ 3.5 million,
and - Make estate tax rates
progressive, depending on the total value between 45% and 65%
of the estate.
The proposed Effective Date is January 1, 2022. Although it is
It remains to be seen whether Senator Sanders has proposed this
Legislation becomes law, the significant risk of negative change
The inheritance tax law appears even bigger. The window of
The possibility of taking advantage of the current exemption could be as narrow as it is now
until December 31, 2021.
There are a number of options through thoughtful gift planning too
Use the current exemption amount or part of it. With a
strong pressure from some congressmen to drastically reduce the flow
Exemption amount, the time to consult an estate planning
Attorney is now to determine if the use is available while it is available
helpful to your family and you. Otherwise, you might say
Farewell to a great opportunity to save estate tax.
Originally published by Ward and Smith, March 2021
The content of this article is intended to provide a general overview
Guide to the subject. Expert advice should be sought
about your particular circumstances.
POPULAR ARTICLES ABOUT: Family and Marriage from the United States
Value of an estate plan review with a second marriage
Ostrow Reisin Berk & Abrams
Getting married a second time can be an exciting time and a new chance for happiness. If you are planning on going down another aisle, it is important to take the time to review and revise
Five Signs Your Ex Is A Narcissist
Dickinson Wright PLLC
A relationship with a narcissist involves a toxic cycle of emotional abuse and destruction. It is not uncommon for a victim to experience the negative effects a narcissist can have on their …